Major European stock indexes traded mixed in the premarket on Tuesday, September 9, as investors digested political turmoil in France following Prime Minister Francois Bayrou’s failed confidence vote.
At 8:00 am CET, Germany’s DAX slipped 0.49%, while the Euro Stoxx 50 declined by 0.19%. France’s CAC 40 and the UK’s FTSE 100 were flat at 8:01 am CET. In currency markets, the euro gained 0.13% against the US dollar to $1.17792, while the British pound rose 0.25% to $1.35792.
Political backdrop in France
French Prime Minister Francois Bayrou lost a crucial confidence vote in the National Assembly on Monday, with 364 members voting against him, 194 in favour, and 15 abstaining. Under Article 50 of the French Constitution, the outcome requires Bayrou to tender the government’s resignation to President Emmanuel Macron, which is expected on Tuesday.
Bayrou had called the confidence vote himself amid concerns about his government’s ability to push through the 2026 budget, which proposes €40 billion in spending cuts. The austerity plan faced criticism across party lines, ultimately leading to his downfall.
Market outlook
The political setback marks a key challenge for Macron’s administration, which now must form a new government capable of securing parliamentary backing for its fiscal program. Investors will also be watching fresh industrial output data from France, set to be released before market opening, for further cues on the region’s economic outlook.
